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Illinois Budget Crisis So Deep It “Pays Lottery Winners In IOUs”

Tyler Durden
August 31st, 2015
Zero Hedge
Comments (74)

illinois-lottery

This article was written by Tyler Durden and originally published at Zero Hedge.

Editor’s Comment: You know things are bad when they stop paying lottery winners – whose winnings represent a small amount of the total cash hauled in by people spending extra in hopes of winning. But in Chicago, pensions have been swindled and traded against the debt, leveraged on the market and held by the state only in a theoretical location that may or may not make it to the desperate pockets of retirees.

The game is rigged, and the State of Illinois is only one of the worst places leading the way in budget crises across the country and globe so deep that an emergency resolution is all but guaranteed. Who will get their share of money from investments and savings accounts mismanaged by these crumbling entities? The answer is basically a game of musical chairs, and many are likely to be left standing and out of luck, while the taxpayers everywhere will be dealt further crippling costs to support governments who are less responsible than the average citizen.

Pardon the pun, but there is obviously no pot of gold at the end of this dark rainbow.

Illinois Pays Lottery Winners In IOUs After $30K/Month Budget “Guru” Fails To Produce Deal

by Tyler Durden

Much as Brazil is the poster child for the great EM unwind unfolding across emerging economies from LatAm to AsiaPac, Illinois is in many ways the mascot for America’s state and local government fiscal crisis.

Although well documented before, the state’s financial troubles were thrown into sharp relief in May when, on the heels of a state Supreme Court ruling that struck down a pension reform bid, Moody’s downgraded the city of Chicago to junk.

Since then, there’s been quite a bit written about the state’s pension problem and indeed, Reuters ran a special report earlier this month that outlined the labyrinthine, incestuous character of the state’s various state and local governments.

On Friday, in the latest sign that Illinois’ budget crisis has deepened, Governor Bruce Rauner apparently fired “superstar” budget guru and Laffer disciple Donna Arduin who had been making some $30,000 a month as an economic consultant.

And while Illinois apparently found the cash to fork over six figures to Arduin for just four months of “work”, the budget stalemate means hard times for Illinoisans – including, apparently, lottery winners. The Chicago Tribune has more:

After years of struggling financially, Susan Rick thought things were looking up when her boyfriend won $250,000 from the Illinois Lottery last month. She could stop working seven days a week, maybe fix up the house and take a trip to Minnesota to visit her daughter.

But because Illinois lawmakers have not passed a budget, she and her boyfriend, Danny Chasteen, got an IOU from the lottery instead.

“For the first time, we were finally gonna get a break,” said Rick, who lives in Oglesby. “And now the Illinois Lottery has kind of messed everything up.”

Under state law, the state comptroller must cut the checks for lottery winnings of more than $25,000.

And lottery officials said that because lawmakers have yet to pass a budget, the comptroller’s office does not have legal authority to release the funds.

Prizes of $25,000 or less will still be paid at lottery claim centers across the state, and people who win $600 or less can cash in their ticket at the place where they bought it.

But the bigger winners? Out of luck, for now.

While lottery officials could not immediately say how many winners’ payments were delayed or provide the total amount of those payoffs, the agency’s website lists multiple press releases for winners since the current fiscal year began July 1. Including Chasteen, those winners represent millions of dollars in prizes.

“The lottery is a state agency like many others, and we’re obviously affected by the budget situation,” Illinois Lottery spokesman Steve Rossi said. “Since the legal authority is not there for the comptroller to disburse payments, those payments are delayed.”

Generally speaking, this just serves to underscore the extent to which gross fiscal mismanagement along with the perceived inviolability of pension “implicit contracts” is pushing Illinois further into the financial abyss, but what’s particularly interesting about the suspension of lottery payouts is that the state is now effectively in default to its own citizens, something which, if the situation were reversed, would not be tolerated, and on that note, we give the last word to Rick (quoted above) and also to State Rep. Jack Franks:

Rick: “You know what’s funny? If we owed the state money, they’d come take it and they don’t care whether we have a roof over our head. Our budget wouldn’t be a factor. You can’t say (to the state), ‘Can you wait until I get my budget under control?'”

Franks: “Our government is committing a fraud on the taxpayers, because we’re holding ourselves out as selling a good, and we’re not — we’re not selling anything. The lottery is a contract: I pay my money, and if I win, you’re obligated to pay me and you have to pay me timely. It doesn’t say if you have money or when you have money.”

This article was written by Tyler Durden and originally published at Zero Hedge.

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Author: Tyler Durden
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Date: August 31st, 2015
Website: http://www.zerohedge.com/news/2015-08-30/illinois-pays-lottery-winners-ious-after-30kmonth-budget-guru-fails-produce-deal

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74 Comments...

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  1. John Q. Public says:

    Trump… in his own words.
    https://youtu.be/G59mNNfLZx8

    • Zero says:

      Illinois is about as fuc ked up a place as one can find on planet earth. The community organizer calls it home as well as the crazed mayor of shitcity and progressive nut cases abound. We would be better off if all mentioned were obliterated from existence.

  2. gilliesuit says:

    this is good news-a healthy economy cannot be constructed in Illinois until the current status quo and government are completely destroyed by a collapse. Lets roll.

  3. still playing in the mud says:

    Off subject, check your Walmart. Zebulon, nc reduced all their AR 15’s to $237.00 to get rid of inventory.
    GOOD LUCK!!

    • killman says:

      You are correct about the low price discounts on some guns. About a week and half ago someone bought 3 Colt 6920 LE for $400 each with tax here in Ohio. The guy then sold one at the local gun show for $450! Also all semi autos are on clearance and my local store sold its last ruger 10/22 for $127.

      • WhoWuddaThunkIt says:

        Your chances of Winning the IL Lotto and Getting paid are still way better than getting promised Ever Lasting Life (John 3-16) and getting financially fleeced weekly by a church. Stoopid sheep just keep on buying weekly church tickets. .

        At least the actual Lotto winners get their photo with the big check. Those who got every lasting life??? Uh.. ummmm. Photos anybody?? Proof? Ummm Crickets…

        ~WWTI

        • WhoWuddaThunkIt says:

          Your chances of Winning the IL Lottery and gettimg paid even if you never play the Lottery, are still greater than coming in contact with anyone with Bubonic Plague. Like one Plague dot in Chicago in decades??? Yeah Fear Porn. Suckers Born every minute buying into that baloney. S o click the Banner Adds and survive. Bwhahahaha.

          ~ WWTI

        • the Lone Ranger says:

          There’s actually been lots of proof, WWTI, starting with the book, “Life After Life” and the latest I’ve read, “Touched By the Extraordinary” by Dr. Susan Barbara Apollon.

          The problem with any of us is that a closed mind allows only part of the truth (if any) in.

          I won’t waste any more of my precious energy (or yours) in expounding upon this.

          In fact, I respect what you believe, and do not believe. I just do not get why you choose not to respect what others believe or do not believe. In fact, you persevorate on that. Prior to all your discourses, I don’t recall anyone shoving their beliefs down your throat, do you?

          – the Lone Ranger

  4. slingshot says:

    Not good for the DOW either.

    Down 114 pts.

  5. DebtZombie says:

    File foreclosuer on a state building for non paymnt! They would if you owed them!

    • Me Here says:

      Too true. The Gov. is one big fat hypocrite.

    • WhoWuddaThunkIt says:

      Has anybody ever sucessfully sued a Church for failure to pay up with ever lasting life? As promised.. John 3-16

      Of course not, cause they are all friggin dead, every last one of them.

      The church promises ever lasting life if you believe, but then in the same sermon, asks you to donate your entire estate to the church upon your death.

      No kidding I heard this in a church back when.. Stoopid sheep just nodded their heads in agreement, sang another song and drank the communion koolaid.

      Connect the dots folks.

      Prepare or prepare to be fleeced.

      ~WWTI.

      • DEATH says:

        WWTI, it’s NOT the church that promises eternal life it’s the Lord Jesus himself.
        Anyways, you’re best off buying yourself a lottery ticket Mr cos you certainly won’t be getting to spend anytime with the GOD you hate and rile against so much.
        But you never know, you may well come to your senses and prep for your eternal future also.
        But if you insist on hardening your heart and blundering along with the masses of lost sheep Eating, drinking & being merry that’s just fine to… Freedom of choice & all that.
        However, don’t forget your appointment with me is drawing ever nearer with every tick of the clock… Tik-tok, tik-tok, tik-tok tik…
        DEATH
        BWAHAHAHAHAHAHAHAHA.

      • smokey says:

        You could sign your farm over to a lawyer and have him file a suit on your behalf the day you die, he’ll be glad to take the case. It’s a cinch you’re not going to be chosen.

        Put your money where your mouth is, WWTI.

  6. Kulafarmer says:

    Why would anyone even play lotto in Il if that was the case,,,
    I bet they want to collect the tax on the winnings even though you didnt actually get the money too.

  7. John says:

    This should be a wake up call to those that play the lottery.
    Funds are not in an escrow account like they lead you to believe.
    Everyone should stop playing the lottery, IOU’s will not pay your bills.
    The odds are against you!

  8. Hunkerdown says:

    Illinois is broke because of government pensions. Period.

  9. For What It's Worth says:

    Ostrich Syndrome has reached epidemic levels among the majority of people here in the Untitled States. Folks with that Syndrome you know what is sticking out and those that suffer from it deserve everything that is coming to them. Make no mistake those of us that have been inoculated from it will survive to live another day. I’m still breathing so it’s not over yet. RIP AMERICA!

  10. Dick Inhand says:

    I only need just six numbers ?

    Peter Gabriel – Shock The Monkey

    https://www.youtube.com/watch?v=CnVf1ZoCJSo

  11. Illini Warrior says:

    The article author must be punch drinking DemoCrap – you can’t write about the financial situation in Illinois without writing about the DemoCraps holding up the state budget …

    They refuse to send any budget that is balanced – all BILLIONS & BILLIONS in the red …. they want to continue the spend spend spend that they got away with the last 12 years …. Gov Rauner is Illinois’s Donald Trump – a self made billionaire that refuses to run a state financially retarded ….

    The same people complaining about the lottery are the same DemoCraps screwing up the budget and the state financials ….

  12. E Company says:

    Zionist Rahm Emanual’s “ChiCongo” is Dead Beat Broke?

    Say it isn’t so?

    Bwaaahahaha!

    How’s the Marxist Communism working out for you now Rahmmy Boy?

    HANDS UP! DON’T SHOOT!

    BLACK LIVES MATTER?

  13. Euragone says:

    And… this is why I don’t play the lottery, They are all rigged..

  14. Vegas started the scam years ago on progressive slots, following the lottery scam of paying out the winnings over 25 years. In other words, you only get 4% of what you win. And 4% every year. Of course the real scam is that they are paying you the money they owe you with cheaper and cheaper dollars (inflation). At an inflation rate of 4% (although we know its much higher), they are really only paying you $417,000 on the $1 million you won. The criminals will now issue an IOU. In other words, your not even gonna get the $417,000, unless they become fiscally responsible. Which they never will.
    The casinos are going to raise the payback period from 25 years to 30 years.

  15. BlackDog says:

    The really comical part of this, Illinois’ inability to pay it’s debts, is that NONE of the politicians, lobbyists, or Big Money players who actually CAUSED THIS have been interviewed by any of the media! Nobody is taking responsibility, nor HOLDING ANYONE ACCOUNTABLE! ‘We Aren’t Alone’ is a pretty feeble cry of defense, dontcha think? It’s not the pension plans. It’s not the steady tax increases that were ‘supposed’ to balance the outright theft of funds earmarked for debt relief. It’s not even an Administration that clearly rivals Richard A. Daly’s Administration for blatant corruption at all levels. It’s all in The Books. There’s the Book of Votes — how did each politician vote on matters that caused substantial negative cash flow, sometimes over years and decades, to State coffers earmarked for debt relief. Not rhetoric, the actual votes. How did they vote? What were their reasons (at least publicly stated)? What was the actual result of their votes, and I don’t mean if the legislation passed or not, but what happened to the money? FOLLOW THE MONEY! There is the Book of Accounts — WHO actually got the money that the politicians voted for on debt relief? This is actually a trick question, with a subpart — How many SETS of books do you keep? And finally, the Book of Resolution — what are the results of all this cashflow, being handled by political middlemen and steered to special interests? Who benefited, who didn’t, and why?

    I went to highschool in northern Illinois about a thousand years ago, and even then, Illinois was neck-and-neck with today’s California. The only difference I see is that Illinois was flat-out all about the money. Vote for it, Steal it, Divert it, Line my effing pockets with it. It was all about greed as far as Illinois was concerned. In Cali, it’s different. They’re just stoopid. They ‘invited’ all those illegals in because they could see themselves in their shoes. Yearning for a better life. Except those same illegals STOLE THEIR SHOES, right off their feets.

    ¿Quieres comprar unos zapatos , dumbass ?

  16. Pizark says:

    You guys are dumb if you believe this…SMH

    You do know who Tyler Durden is ,right???!!!

  17. anonymous5 says:

    Just wait until they issue IOU’s instead of EBT cards.

    That will be fun.

    • John Stiner says:

      Remember a couple of months ago when the EBT system went down for about 6 hours and the darkie thugs looted Walmart in Louisiana? Walmart had to issue vouchers to keep the thugs under control even though the vouchers turned out to be nonredeemable by the State?

      Turn off the EBT and it will be looting and rioting in hours.

      If someone really wanted to destroy america, hack the credit card systems and stop transactions for only a day and the darkie thugs will burn america down.

      Maybe that is why someone is attacking the internet lines in California.

      • WhoWuddaThunkIt says:

        Preppers: Stop buying all these BS Prepper Supplies for what If’s. Seriously. 6 mths into a bug out, I never put a tent up yet, and I have 3, Stop buying all the stuff that has expirations dates, like Medical supplies. Sure have a kit but I rarely used any of it. I have 5 stoves, never used and pocket stoves. You will starve before it heats up any food in time. Stop buying all this pantry, wise food, survival food. Aure have a few cases of MRE’s but do buy up lots of regular canned food wich you can eat outof the can with out heating. Do buy at least a half dozen or a dozen flashlights and lots of batteries to run them. Ive had 3 lights now fail on me. Those rechargable lights loose their charging ability after a few years and its justcrap by the time you really need it. Do buy at least 4 to 5 cell ph chargers. One lasted about 4 mts and doesn’t hold a charge. Do buy Silver Colide. Stop wasting your money buying all the needless crap in the last article for the plage. You will find its way easier to leave the area than carry all that semi trailer full if bs supplies. Stock up on lots of canned food. Sure Mt House for a bug out bag and get a couple of really good water filters like a Katadyne ceramic filter, but I still have not used any of those yet. Since it is hot in FL sunscreen and I go through a lot of sweat towls and underwear since I change just from body sweat. Do buy lots of hand tools and fastners like nails and wall board screws to put a real shelter together. Go Solar with chargers. Quiet is good. Even if you know how to cann food how you gonna do that bugged out. Still have not shot a gun yet, and Im waste deep in guns and ammo and carry daily, but a high power 1200 fps air pellet rifle is handy even fir small game. The key is quiet and stealthy, Do buy a few cases of Camo Spray paint. Low and little footprint is best. Do get at least one or two portapotties / Lugaloos with a toilet aeat that fits on a 5 gal bucket. And save all your plastic grocery bags. I ask for all my groceries I buy to be double bagged to get more bags thay fit perfect on a 5 gal bucket. I triple the bags in case the top one has a leak. Do buy about 3-4 big bottles if bleach. That too looses stregnth over time. Most of the other aruff go aell it off on craigs list or yard sale, you will never use it and more than likely abandon it if you had ro bug out. Do Buy 200 lighters on Amazon for $40. Never used a fereseim rod (sp) whatever…. Prepping can be an obsession, stay calm and think, your brain is your best prep tool. Fear porn is designed to sell you stuff you do not need. Just like the Governments Boogie man to sell you war, or Religions Hell and Fire Brimstone Devil if you fail to believe. Its all fear BS to xon you into buying something, a book, food? Etc…. Like what does this article about the IL lottery have to do with prepping. Just more pie filler for the fish.

        ~WWTI

        • WhoWuddaThunkIt says:

          I will add, get a few good 3-4 inch pocket knives, 4-5 pairsof good leather gloves, several good quality boots, water proof boots, several rain ponchos. I like woodland camo clothing. Stealthy is good. Gasoline jerry cans and PRI-G, 2-3 car oil filters, extra windshield wiper blades, fanbelts, locking gas cap, shaker siphon hoses, motor oil for several changes, tire plug kit, extra car fuses, etc
          You know practical stuff you will use in time.

          Its just way too wet here in FL lately to use wood as a heat or fuel cooking source. Stock up heavy on lots of propane filled tanks. I only went through one tank in about 5-6 mts. Instant cheap cooking heat with a camp stove. I use my Lodge cast iron cookware with a propane stove. Get a good tea kettle for heating water for dishes and coffee. Get a couple of plastic one ft long pans for doing dishes. And ceramic no mess pans. Get them at Wallyworld, cheap.

          ~WWTI

    • Sgt. Dale says:

      A5
      I can’t wait!!!
      Sgt.

  18. USMC1982 says:

    Almost every big city in America is in financial distress. And somehow the people still sleep. But I think more and more are waking up. For the first time ever we had a survival/prepper show and outside of Atlanta this month. Must be a growing market right?

  19. Kevin G says:

    Wonder how Ol Publisher’s Clearing-House is doing?

    “You can’t win if you don’t play!”
    I don’t pay to play cause they have little interest in paying anyone but themselves!

    • Woogie says:

      You got it. Their products are low quality, even their bulbs don’t sprout and are more expensive than store bought. And don’t be fooled by getting entries by the expiration date where they claim to get it in by the “soon” to be deadline for the grand prize drawing—read the grand prize contest #number giveaway and you will find on a small print folder that the grand prize contest giveaway #is awarded a year or two later.

  20. I wonder how long it’s going to take until Southern Illinois (more conservative) gets serious about splitting off from the Chicago area. There’s a HUGE cultural gap between the two to the point where the state just doesn’t make sense anymore. I have a feeling when/if the economy really really gets bad, we’ll start seeing some new lines drawn on the map….

    • Woogie says:

      I’m originally from Illinois. Downstate has always wanted to declare Chicago a different state since the 70’s because all the tax money went to that city.

    • Illini Warrior says:

      Ryan – every sizable state in the Union has the same problem – a large metro area dominating the remainder of the state ….

      The only state division that has ever been made in US history was West Virginia from Virginia – and that was 100% Civil War politics ….

      Currently – Southern IL is in such bad shape financially that they’d be immediately broke – state income is all Central and Northern IL oriented …. only hope for the South is a coal mining re-start and cracking for oil – could be a huge boom under the correct international conditions ….

  21. Plan twice, prep once says:

    This is saying Illinois is insolvent, and the stock market hasn’t even crashed yet.

    Tick tock!

    The market continues to go down, as the global economy goes down. The FED and Treasury department can manufacture all the fake US financial numbers they want, and even manipulate the price of gold and silver, and the US stock market, but they can’t manipulate the world economy or the economic numbers of hundreds of countries. When the pressure gets strong enough they will lose control of the fantasy.

    Till then, take advantage of the cover to continue planning and preparing.

  22. Asshat says:

    State runs the lottery folks they use the $ to run the state. Paying a big win is like paying an insurance claim. The states are flat broke people gas is so cheap because it’s a form of stimulus. i wouldn’t trust my state lottery commission to come through for me. Id want the lump sum taxed up front then I’d burn the rest in a big bonfire so no one can get it. I’m not helping the Economy. I’d burn it all. im used to living poor don’t bother me honestly. I don’t need people finding out I won the big $ and coming around for handouts no thanks.

  23. Burt Gummer says:

    A while back, (maybe years), there was a thought exercise on one of these blogs about “How would you spend your lottery winnings on preps?” Perhaps we need to revisit this with the current context in mind; “How would you go about collecting money from a broke ass government that took your money (contract) and refused to deliver their part of the bargain?”

    Or, how are you distancing yourself from any contract with The Corp and it’s many offspring?

    I’m lowering my tax exposure to do my part to starve the beast… if I don’t make money, they can’t take any from me.

    Also doing as much as possible to get out of the system, letting contracts expire (city and state licenses) as well as ending business relationships in unfriendly jurisdictions, (no more permits pulled).

    What are your thoughts?

    • Woogie says:

      I make less money, get the most from my paycheck from deductibles. If someone gives you money for this or that, or whatever, have them give it as a “gift”. My CPA said you can get up to $13k a year as a gift and it is non-taxable. Many people work for cash, but golly gee, I would never do that 🙂

  24. no name says:

    I guess he can send the IRS the fed tax due on that with the IOU’s he got from the state, smirk……

  25. Jesus talks to me says:

    Illinois needs to stop paying police officers who violate children’s rights. Making children strip down without their parents present should be grounds for being fired, in Illinois they promote you.

    Watch how quick the greatest security guard in Tennessee comes to the rescue.

    Jesus has told me only the atheists will survive because they are not being fooled by false hope.

  26. Sgt. Dale says:

    Down State Illinois is not that bad it is Shitcago/Chiraq, and a couple of the larger cities in the state with all of there Zombies and Leaches that just sit on their porches all day and shoot up the area at night. Where to them black & white lives don’t matter because they are killing their own.

    Very simple this is where the problem is. The other problem is the Demos holding office in Springfield. One guess where all the Demos are from. Shitcago, Fuckford, Pissoria, Awhorea, Juckiet. This is where 90% of the Zombies and Leaches live.

    Just think this is coming to the rest of the states that have the Demos running them.

    Sgt.

  27. Kevin2 says:

    In the end the funds to continue to finance State Government will come from the Federal Government via the Federal Reserve thus increasing control of same.

  28. Toronto Doctors says:

    The miracles of Big Government, feminism and socialism all in one!

  29. swinging richard says:

    Illinois has been in trouble for a long time. Nothing new here. The lottery fund is another pool of money for the political machine to abuse. Time to stop the abuse. Lottery funds should be used for the lottery.

  30. Here is some shit we will never get from our “Media”

    http://www.rt.com/usa/guccifer-clinton-emails-second-678/

    yep hacked and spread because we cant trust the home sources

  31. My first question is, why does anyone play the lottery to begin with. With that said, if this story is accurate (I honestly don’t know)m why would anyone play the Illinois lottery.